Bank of England governor Andrew Bailey has talked up the prospects of the UK reaching a trade deal with the EU.
With transition arrangements due to expire at the end of the year and political attention focused on the coronavirus crisis, critics had begun to question whether an “oven ready” Brexit deal would creep over the line by the deadline.
Key figures such as Michael Gove have recognised that there remains a significant chance of a deal not being finalised, with the odds as high as a third, he told MPs earlier this week.
Speaking with the Yorkshire Post in an interview quoted by the Reuters news agency, Bailey said: “I do think it is in the interests of both sides – let’s be blunt – to get an agreement…
“I’m surprised that the EU wants to restrict where their citizens can do business. We will certainly keep our markets open to the world.”
While Bailey advocated equivalent financial services regulatory standards once more, he also said that the UK would not necessarily follow EU rules where it no could no longer control them.
On a positive note, he said that the continuing effects of the coronavirus are unlikely to be as heavy on the economy as the second quarter’s slump, but that the Bank was still prepared to step in if it was required to
“There will be a degree of natural caution…The policy tools will be used to the fullest extent possible to support the businesses and people of this country,” he said.
However, Bailey noted that for particular parts of the economy there remained a bleak picture.
“We’ve got to face up to the question of how long the economy can go on for before some degree of structural change has to happen. It’s a hard one,”
